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Hello, can someone please help me. I'm new to accounting and i'm having lots of trouble. i would really appreciate your help Problem 6 -

Hello, can someone please help me. I'm new to accounting and i'm having lots of trouble. i would really appreciate your help

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Problem 6 - 11 Cost Behaviour , Analysis of Mixed Costs , Contribution Margin Income Statement ( LO1 - CC 1 , 3 , 6; LO2 - CC7, 9; LO3 - CC 12 ) The Central Valley Company is a manufacturing firm that produces and sells a single product . The company's revenues and expenses for the last four months are given below . Central Valley Company* Comparative Monthly Income Statements March April May June Sales in units 5, 200 4, TOO 5, 450 6, 000 Sales revenue $ 728, 000 $658, 000 $763, 000 $ 8:40, 000 Less : Cost of goods sold 3.84, 800 357, 800 3.93, 300 $28, 000 Gross margin 3.43, 200 3.00, 200 369, 700 $12, 000 Less : Operating Expenses Shipping EXPENSE 65, 300 60 , 300 $8, 5.50 72,000 Advertising expense* 72, 000 72, 000 72,000 72, 000 Salaries & commissions 170, 200 15.3, 500 170, 650 182, 500 Insurance EXPENSE* 9, 200 9, 200 9, 200 9, 200 Depreciation expense* $ 1, 000 $ 1,000 $ 1, 000 $1,000 Total operating Expenses 357, 700 3.36, 400 361, 400 376, 700 Net income* $ 1 14, 500) $ 136, 200) $ 8, 300 $ 35, 300Required . 1. Management is concerned about the losses experienced during the spring and would like to know more about the cost behaviour . Develop a cast equation for each of the costs . COGS Shipping Salaries and commissions -2. Using the cost equations, prepare a contribution margin income statement {in good form] for September when 5,300 units are expected to be sold

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